Positive pay checking systems that protect banks and check payors from fraud are known. In a positive pay system, the check payor creates, either manually or electronically as described below, a file of information specific to each check issued by the payor that typically includes, for example, the date of the check, the check serial number, the account number of the account on which the check is drawn, the payment dollar amount of the check, and the name of the payee. The file of information for each check is then forwarded to the payor's bank. When the payor's bank receives one of the payor's checks for payment, the bank compares the information for the check previously provided by the payor in the file described above to the information on the check. If the information does not match, the payor's bank returns the check to the bank of first deposit as a potentially fraudulent check.
Most payors that issue large numbers of checks utilize computer payment systems having accounting software or the like to issue, print and account for checks. If a positive pay checking system is to be implemented in conjunction with such computer payment systems, either (i) the accounting software must be adapted or modified to create a record in a positive pay file for each check prior to printing the check, or (ii) an application must be used that reaches into the payment system's database files to create a record in the positive pay file for each check that is issued, which requires an understanding of the database schema. What this means is that checks that are created manually (i.e., by handwriting and not by a computer payment system) cannot be conveniently and/or automatically protected by a positive pay system as the information required for the positive pay file for such checks must be manually captured and entered. What this also means is that checks that are printed by a computer payment system that either (i) does not have accounting software that is able to create records in a positive pay file for each check, or (ii) does not have an open database schema, thereby preventing an application as described above (i.e., for accessing the information needed to create the positive pay file with records for each check) from being created, also cannot be conveniently protected by a positive pay system. Thus, there is a need for a positive pay checking system that addresses these problems and that allows all or nearly all checks issued by a payor to be conveniently and automatically protected.